April 18, 2013 8:35 AM | 1 min read |
27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.
In a report published Thursday, Bank of America analyst Doug Leggate upgraded the rating on Cabot Oil & Gas Corporation (NYSE: COG) from Neutral to Buy, and raised the price target from $54.00 to $93.00.In the report, Leggate noted, “We are upgrading Cabot Oil & Gas to Buy. Since we reinstated coverage at the start of the year, management has materially increased its assessment of per well EUR's in its flagship Marcellus play. Using management's stated well design, and risk parameters that recognize the proportion of prospective acreage, the impact is a material increase in the associated NAV dropping the implied embedded long term gas price from ~$5.50 at the start of the year to $3.50 today. Production continues to accelerate, with several wells now delivering above type curve IP rates of 17 mmcfe/d. In our view, Cabot's top line growth more than compensates with a forward EV/DACF multiple generating the highest multiple compression in our coverage group for the year 2013-2014.”Cabot Oil & Gas Corporation closed on Wednesday at $63.96.
27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.
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